Government Unlikely to Mobilise Rs 15,000 Cr from Gold Bond Scheme

NEW DELHI: Government is unlikely to mobilise Rs 15,000 crore from sovereign gold bond scheme, even as its second tranche was launched today.         

Raising Rs 15,000 crore from gold bond scheme by March end seems to be a difficult target, official sources said.           

As per the second half borrowing programme issued by Reserve Bank in consultation with government, Rs 15,000 crore had to be raised through gold bonds.            

The fund raised from gold bonds would be part of the market borrowing programme in addition to Rs 2.34 lakh crore to be raised through dated securities during October-March period of the current fiscal.            

Aimed at curbing demand for physical gold, the government could mobilise Rs 246 crore from the scheme in the first tranche that closed on November 30.       

Second tranche of the sovereign gold bond scheme is open for subscription from today till January 22.            

The gold bonds are issued in denominations of 5 grams, 10 grams, 50 grams and 100 grams for a term of 5-7 years with a rate of interest to be calculated on the value of the metal at the time of investment.    

The Gold Bond Scheme will have an annual cap of 500 grams per person.          

Prime Minister Narendra Modi had on November 5 launched gold schemes to wean investors away from physical gold.          

India imports about 1,000 tonnes of gold every year and the precious metal is the second-highest constituent of the import bill after crude oil.       

The scheme is aimed at reducing demand for gold in physical form by encouraging people to buy the commodity in demat or the paper form.   

In April-December this fiscal, gold imports rose to USD 26.45 billion, from USD 25.85 billion in the same period last year.   

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